KRM22 Secures New Limits Manager Contracts, Boosting ARR to £7.3m
Why we think this is good
The announcement of two new customer contracts for KRM22's Limits Manager application is a positive development. The contracts have a combined value of £0.8m over 2-3 years, representing a meaningful revenue opportunity for the company. The fact that these are cross-sales with existing major customers suggests the execution risk is relatively low. Additionally, the increase in ARR to £7.3m is in line with market forecasts, indicating a positive short-term earnings impact. While some financial details are unquantified and broader economic uncertainty remains a risk, the overall sentiment is positive given the contract wins and their contribution to the company's growth.
Key Points
- KRM22 has signed two new customer contracts for its Limits Manager application
- The contracts have a combined value of £0.8m over 2-3 years
- The new contracts have increased KRM22's annual recurring revenue (ARR) to £7.3m
- The ARR increase is in line with existing market forecasts to reach £7.9m by the end of 2025
Summary
KRM22 plc, the technology and software investment company, has announced the signing of two new customer contracts for its Limits Manager application. The contracts, which cover a period of 2-3 years, have a combined value of £0.8m. This represents a meaningful revenue opportunity for the company, especially considering its current market cap of £9.4m. The new contracts have increased KRM22's annual recurring revenue (ARR) to £7.3m, which is in line with existing market forecasts to reach £7.9m ARR by the end of 2025. While some financial details are unquantified and broader economic uncertainty remains a risk, the overall sentiment is positive given the contract wins and their contribution to the company's growth.